Bitcoin Encounters $250B Liquidity Barrier as Exchange Balances Plummet
The liquidity environment for Bitcoin is undergoing significant changes as more major investors and institutions transfer their holdings away from exchanges, pointing to a looming $250 billion liquidity barrier. With
ZOOZ Strategy Ltd., the first company listed on both Nasdaq and TASE to make Bitcoin a primary treasury asset, has recently acquired $10 million in Bitcoin (94 coins at $112,000 each), bringing its total to 1,036 coins valued at $115 million, as
At the same time, Binance's ratio of Bitcoin to stablecoins has fallen to 3–4, a rare occurrence that has historically preceded major price increases. Analyst Darkfost pointed out that similar ratios in 2023 and 2025 came before significant Bitcoin rallies, like the surge from $78,600 to $123,500 in March 2025, according to a
This migration away from exchanges is not just a retail phenomenon. Large holders, or whales, have stepped up their activity, with 2,000 Bitcoin (worth $220 million) leaving Binance in just two hours, as reported by a
Liquidity challenges are putting market stability to the test. MEXC, one of the top exchanges, has denied rumors of insolvency after experiencing record Bitcoin outflows totaling $5.5 billion in 24 hours—exceeding its $5.13 billion in assets, as noted in a
Bitcoin’s future direction depends on how these key liquidity zones are resolved. If the price breaks above $117,000, it could trigger a wave of short liquidations, pushing the price toward $120,000. Conversely, a drop below $111,000 could lead to a correction down to the $108,000 support level, as highlighted in the Coinotag article. Market watchers are also monitoring the Federal Reserve’s policy moves, as BlackRock’s $88 billion Bitcoin ETF and regulatory developments continue to influence institutional interest.